DEFENSE LOGISTICS AGENCY 

HEADQUARTERS 

8725 JOHN J. KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 2 2060-6221 

September 04, 2014 

MEMORANDUM FOR SUPPLY AND SUPPLY DISCREPANCY REPORT (SDR) PROCESS 

REVIEW COMMITTEE (PRC) MEMBERS 

SUBJECT: Approved Addendum to Approved Defense Logistics Management Standards 

(DLMS) Change 1022A, Procedures for Processing Depot Returns - Revised 

Exclusions from Automatic Disposal Procedures (MILSTRAP/SDR/DLMS) 

The attached change to DLM 4000.25, Defense Logistics Management System (DLMS) and 

DLM 4000.25-2, Military Standard Transaction Reporting and Accountability Procedures 

(MILSTRAP), is approved. This change is effective upon publication. 

Addressees may direct questions to Ms. Ellen Hilert, DOD SDR System Administrator, 

e-mail: ellen.hilert@dla.mil, or Ms. Mary Jane Johnson, DOD MILSTRAP Administrator, email: 

mary.jane.johnson@dla.mil. Others must contact their Component designated Supply PRC 

representative or SDR Subcommittee representative available at 

https ://www .dla.rnil/j-6/ dlmso/CertAccess/S vcPointsPOC/allpoc.asp. 

Attachment 

As stated 

cc: 

ODASD (SCI) 

c£~~ Director 

Defense Logistics Management 

Standards Office 
Attachment to ADC 1022A 

Procedures for Processing Depot Returns - Revised Exclusions from 

Automatic Disposal Procedures

1. ORIGINATOR:

a. Service/Agency: Defense Logistics Agency (DLA) and United States Air Force (USAF)

b. Originator: DLA J33, 703-767-2527 (DSN 427)

c. Originator: USAF, HAF/A4LR, 240-612-4312 (DSN 612)

2. FUNCTIONAL AREA: Supply (Receiving and Reclassification)

3. REFERENCES: 

a. Defense Logistics Manual (DLM) 4000.25, Defense Logistics Management System 

(DLMS), available at www.dla.mil/j-6/dlmso/elibrary/manuals/dlm/dlm_pubs.asp

b. DLM 4000.25-2, Military Standard Transaction Reporting and Accountability Procedures 

(MILSTRAP)

c. PDC 403, Revised Procedures for Processing Depot Returns (including Receipt and SDR), 

dated January 31, 2011

d. ADC 1022, Procedures for Processing Depot Returns (Including Receipt, SDR, and 

Revision to Time Standard for Reclassification of Supply Condition Code J and K Assets), dated

October 19, 2012

4. APPROVED CHANGE: Substantive changes to establish additional exclusions to ADC 

1022 procedures are highlighted. All other elements of the original ADC 1022 are retained 

as approved. There are no substantive changes resulting from staffing of the proposed 

change.

a. Overview of Change: This ADC amends procedures as originally approved under ADC 

1022 (Reference 3.g.). This change revises MILSTRAP procedures to support DLA Distribution 

Center processing and automatic disposal of materiel categorized as Supply Condition Code 

(SCC) H, Unserviceable (Condemned),

1 with specific exceptions identified including exclusion 

of materiel from an FMS customer or owned by the Air Force. 

b. Background: 

(1) Refer to ADC 1022 (Reference 3.g.) for background information associated with the 

1 SCC H, Unserviceable (Condemned). Materiel that has been determined to be unserviceable and does not meet 

repair criteria; includes condemned items that are radioactivity contaminated, Type I shelf life materiel that has 

passed the expiration date, and Type II shelf life materiel that has passed the expiration date and cannot be extended.

Attachment, ADC 1022A 

Page 1

 
original change.

(2) During implementation of ADC 1022 automatic disposal procedures, DLA 

Distribution questioned whether it would be appropriate to include FMS returns. After further 

considerations by DLA, an exclusion was proposed for this materiel.

(3) During development of the original DLMS change the Air Force had recommended 

an exclusion for Air Force materiel. This exclusion was later eliminated by the Air Force during 

staffing and was not contained in the approved change. After further consideration by the Air 

Force, the original exclusion was determined to be appropriate and the Air Force requested that it 

be reinstated under this addendum.

 c. Detailed Procedures – SCC H and Automatic Disposal: 

(1) SCC H materiel received and identified by catalog data with the DEMIL Codes,

Controlled Inventory Item Code (CIIC), or Water Type Cargo Code per list below will not be 

disposed of automatically. The materiel will be receipted in SCC H (the SCC will not be 

changed during receipt pending disposition instructions), stored in a DLA Distribution Center

storage location, and an SDR submitted to the owner requesting disposition. The following 

code values are applicable:

• DEMIL Codes: B, C, D, E, F, G or P,

• CIIC: A-H, K, L, O, Q, R, S, T, 5, 6, 8, 9,

• Water Type Cargo Codes: A and 4 (indicating radioactive 

substance).

(2) SCC H materiel received without the codes listed above and with a dollar value of 

less than $500 per item will be processed for automatic disposal using management code of J, M,

or T. 

(3) Exceptions:

(a) GSA managed materiel and Non-Army Managed Items (NAMI) (Routing 

Identifier Code AJ2) owned materiel will not be subject to the dollar value threshold for disposal 

eligibility, but will still be subject to all other screening criteria. 

(b) U.S. Army Aviation and Missile Command (AMCOM) (Routing Identifier 

Code B17) materiel, including materiel identified by a local stock number (internal Distribution 

Standard System (DSS) Stock Identification Code Z), will not be eligible for automatic disposal 

regardless of DEMIL Code, CIIC, or Water Type Cargo Code. This materiel will be receipted in 

SCC H (not changed to K as done currently) and an SDR submitted to the owner. 

(c) USAF materiel will not be eligible for automatic disposal regardless of 

DEMIL Code, CIIC, or Hazardous Type Cargo Code except as indicated below.

Attachment, ADC 1022A 

Page 2
1. Materiel received in SCC H for Air Force at DLA Distribution Warner 

Robins Georgia, DLA Distribution Center Hill Utah, and DLA Distribution Oklahoma City, 

Oklahoma will be left in Condition H and reported to the Air Force owner.

2. Materiel received in Condition H for Air Force at sites not co-located 

with Air Force depot maintenance: 

a. For Air Force managed materiel, the materiel will be left in Condition 

H and will be reported to Air Force owner.

b. For non-Air Force managed materiel, use the automatic disposal

process as described in paragraph 4.c. (Detailed Procedures - SSC H and Automatic Disposal) of 

this DLMS change.

(d) FMS materiel (document number beginning Service/Agency Code B, D, I, K, 

P, or T) will not be eligible for automatic disposal regardless of DEMIL Code, CIIC, or Water 

Type Cargo Code. A DLMS 940R/A5J Disposal Release Order must be provided for inclusion 

in the disposal process and subsequent shipment to DLA Disposition Services.

d. Staffing Response to PDC 1022A:

Originator Response/Comment Disposition

1. Army Concur. Noted.

2. Navy Concur. Noted.

3. DLA Concur. Noted.

4. Air Force Concur. Noted.

5. Marine Corps Concur. Noted.

6. USTRANSCOM Abstain. There is no impact to USTRANSCOM 

systems based on this change.

Noted.

5. PUBLICATIONS: Revise DLM 4000.25-2, MILSTRAP Chapter 4 as shown in the 

enclosure. Comparable changes will be made to the DLMS manual.

6. ALTERNATIVES: None identified.

Attachment, ADC 1022A 

Page 3
7. REASON FOR CHANGE:

a. Automatic Disposal Exclusion for FMS materiel: Allows DLA Disposition to work FMS 

disposal actions manually, which is necessary to work with the host country and can take a 

lengthy amount of time.

 b. Automatic Disposal Exclusion for USAF materiel: Allows AF internal logistic 

transactions (i.e., due in from/due out to maintenance (DIFM/DOTM) and due in from overhaul 

(DIOH) to be properly cleared in the AF supply system.

8. ADVANTAGES AND DISADVANTAGES:

a. Advantages: 

(1) Improved handling of assets requiring security measures. 

(2) Elimination of duplicate manual handling of materiel and provides greater savings 

for our customers.

(3) Elimination of unwarranted disposal of secured and classified assets without

authorization of owner.

(4) Provides procedures for notifying the returning activity of discrepant returns.

b. Disadvantages: This change does not fully resolve issues related to high volume of 

unidentified materiel. The alternative to automatic disposal is an increased volume of suspended 

materiel and supply discrepancy reports pending owner disposition instructions.

9. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: This change is effective 

upon publication. If system changes are required to support this change, the implementation goal 

is to fully implement within 6 months of approval. 

10. IMPACT:

a. DLMS Data: No data elements are added or revised under this addendum.

b. Component Automated Information Systems (AIS): No impact identified.

c. DLA Distribution/Distribution Standard System (DSS): Implement additional 

exclusion from automatic disposal for FMS and Air Force materiel as described above.

d. DLA Transaction Services: No impact.

e. Non-DLM 4000.25 Manual Publications: Internal distribution center procedures may 

require update.

Attachment, ADC 1022A 

Page 4
Enclosure, DLM 4000.25-2, MILSTRAP Revisions (Chapters 4 and 5)

Revisions applicable to ADC 1122A are shown in red bold italics and strike through. The 

original ADC 1122 changes are retained in black bold italics for context (these changes were 

previously published in the manual). Comparable changes will be made to the DLMS manual.

Chapter 4

Receipt and Due-In

C4.9. PROCESSING DISCREPANT/DEFICIENT RECEIPTS

(intervening text not shown)

C4.9.3. Receipt Reporting For Discrepant Shipments From Non-Procurement Instrument 

Sources

(intervening text not shown)

C4.9.3.3.1. Condition of Materiel

C4.9.3.3.1.1. When inspection of inter-Service/Agency receipts reveals 

materiel to be SCC H and no PMR is recorded, storage activities will automatically ship 

discrepant materiel valued at less than $100 $500 per item direct to the property disposal activity 

except as specified in these procedures or take other automatic disposal actions based on 

criteria promulgated by the Services/Agencies. This includes Type I shelf-life materiel which 

has passed the expiration date regardless of value. When automatic disposal action is taken, cite 

SCC H and Management Code M (excludes shelf-life materiel) or Management Code T (expired 

shelf-life materiel), in lieu of the discrepant receipt management code, in the receipt transaction 

for the discrepant quantity.

C4.9.3.3.1.1.1. GSA Managed materiel and Non-Army Managed 

(NAMI) (Routing Identifier Code (RIC) AJ2 ) owned materiel will not be subject to the dollar 

value threshold for disposal eligibility, but will be subject to all other automatic disposal 

screening criteria. 

C4.9.3.3.1.1.2. Automatic disposal does not apply to the following:

C4.9.3.3.1.1.2.1. Materiel that is identified as requiring 

demilitarization DEMIL or containing radioactive, classified, or NWRM properties will not be 

subject to automatic disposal. This includes:

• DEMIL Codes: B, C, D, E, F, G, or P0 

• CIIC: A-H, K, L, O, Q, R, S, T, 5, 6, 8, 9 

• Radioactive Water Type Cargo Codes: A and 4

Enclosure, ADC 1022A

Page 1
C4.9.3.3.1.1.2.2. Materiel owned by U.S. Army Aviation and 

Missile Command (AMCOM) (RIC B17), will not be subject to automatic disposal. 

C4.9.3.3.1.1.2.3. Unidentified materiel will not be subject to 

automatic disposal. Follow procedures in paragraph C4.9.3.1.

C4.9.3.3.1.1.2.4. FMS materiel will not be subject to automatic 

disposal. Follow procedures in paragraph C4.9.3.1.

 C4.9.3.3.1.1.2.4. Materiel owned by Air Force will not be subject 

to automatic disposal except for non-Air Force managed material located at a DLA 

distribution center not co-located with an Air Force depot maintenance site.

C4.9.3.3.1.1.3. Upon receipt, or subsequent storage activity 

determination, that materiel is in SCC H, where the above criteria prohibit automatic disposal, 

an SDR shall be prepared clarifying why automatic disposal is not possible and requesting 

specific disposition instructions. Where applicable the SDR remarks will inform the action 

activity that the materiel cannot be shipped to the local DLA Disposition Services Field Office 

and must be sent to an approved DEMIL/destruction center via MILSTRIP DIC A5J 

generated by the owner/manager.

--------------------

Chapter 5

Adjustments

C5.2.5. Automatic Disposal of Reclassified Stock. When materiel is reclassified to SCC 

H, storage activities may also, based on criteria promulgated by the DoD Components, 

automatically turn condemned and expired shelf-life materiel into reutilization and marketing or 

take other authorized automatic disposal action. Advise the owner of such simultaneous 

reclassification and automatic disposal action by entering Management Code M (materiel 

condemned--excludes expired shelf-life materiel) or Management Code T (materiel condemned--

expired shelf-life materiel) in record position 72 of the dual adjustment transaction. Refer to 

C4.9.3.3.1. for exclusions from automatic disposal.

Enclosure, ADC 1022A

Page 2